BTC / USD
27,066.79
0.41%
(-112.53)
ETH / USD
1,892.73
0.61%
(-11.6)
XRP / USD
0.52
0.59%
(-0)
LTC / USD
95.50
0.96%
(+0.91)
EOS / USD
0.91
0.3%
(0)
BCH / USD
114.82
0.24%
(+0.27)
ADA / USD
0.38
0.11%
(-0)
XLM / USD
0.09
0.24%
(0)
NEO / USD
10.51
0.38%
(+0.04)
XEM / USD
0.03
0.64%
(0)
DASH / USD
42.52
0.28%
(+0.12)
USDT / USD
1.00
0%
(0)
BNB / USD
306.61
0.04%
(+0.11)
QTUM / USD
2.66
0.83%
(+0.02)
XVG / USD
0.00
0.56%
(0)
ONT / USD
0.23
1.12%
(0)
ZEC / USD
32.22
0.44%
(+0.14)
STEEM / USD
0.18
0.16%
(0)

Bitcoin Dives Below $40K, Why Bulls Could Struggle In Near Term

0

Bitcoin started a strong decline from the $43,500 resistance against the US Dollar. BTC remains at a risk of more downsides below the $39,200 support.

  • Bitcoin started a major decline after it failed to clear the $43,500 resistance.
  • The price is still trading below $41,000 and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $42,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to move down if there is a break below the $39,200 support.

Bitcoin Price Declines Heavily

Bitcoin price gained pace for a move above the $42,500 level. However, BTC struggled to gain pace for a move above the $43,500 resistance zone.

A high was formed near $43,497 before the bears appeared. As a result, there was a fresh decline below the $42,000 support level and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $42,000 on the hourly chart of the BTC/USD pair.

There was a fresh decline below the $41,200 support zone. Bitcoin even declined below the $40,000 support zone. A low is formed near $39,261 and the price is now consolidating losses.

On the upside, an initial resistance is near the $40,250 level. It is near the 23.6% Fib retracement level of the recent decline from the $43,497 swing high to $39,261 low. The first major resistance is near the $40,500 level. An upside break above the $40,500 resistance could start a steady recovery wave towards $41,200.

Source: BTCUSD on TradingView.com

The next key resistance is near the $41,200 level, above which the bulls might aim a test of $42,500. Any more gains may perhaps call for a move towards the $43,500 resistance zone.

Fresh Drop in BTC?

If bitcoin fails to start a fresh increase above $40,500, it could start a fresh decline. An immediate support on the downside is near the $39,500 zone.

The first major support is seen near the $39,200 zone. A downside break below the $39,200 support zone may perhaps spark another major decline. The next major support is near $38,500, below which the price could even decline below the $38,000 zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is in the oversold zone.

Major Support Levels – $39,500, followed by $39,200.

Major Resistance Levels – $40,250, $40,500 and $41,200.

Leave A Reply

Your email address will not be published.